SEBI mandates depository-level NAV reporting for AIF units

The Securities and Exchange Board of India (SEBI) has issued a circular dated February 6, 2026 (Circular), mandating the reporting of Net Asset Value (NAV) of Alternative Investment Fund (AIF) units to depositories, as proposed by SEBI vide a draft circular dated September 19, 2025 (which can be accessed here). This initiative aims to leverage the depository infrastructure for enhancing transparency and operational efficiency in the AIF ecosystem, while facilitating system readiness of AIFs, Registrar and Transfer Agents (RTAs) and depositories.

Key highlights of the Circular are outlined below:

1. Mandatory NAV upload to the depository system:

• • AIFs, through their RTAs, will be required to upload the latest available NAV corresponding to each International Securities Identification Number (ISIN) of units of the AIF, in the depository system before May 1, 2026, or within 30 days from the date of valuation of the investment portfolio, whichever is later.

• • For the purposes of this mandate, the valuation date will be considered as follows:

• • • • in case the valuation is carried out by independent valuers, the date of the valuation report; and

• • • • in case the valuation is carried out by internal valuers, the date on which the valuation is documented in the internal records of the fund.

• • The manager of the AIF will be responsible for ensuring timely and accurate uploading of NAV.

2. Obligations of depositories: 

• • Depositories are required to build necessary infrastructure for uploading of NAV by RTAs and for reflection of the same in the depository system.

• • Depositories must incorporate the following disclaimer wherever AIF NAV is being displayed: “Net Asset Value (NAV) being shown is on the basis of valuation methodology and accounting practice followed by your respective AIF. Please refer to your fund documents for more details.

• • Depositories must make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions and bring the provisions of the Circular to the notice of their members or participants and disseminate the same on their websites.

Conclusion:

The Circular represents SEBI’s ongoing efforts to enhance transparency and operational efficiency in the AIF ecosystem. By leveraging the depository infrastructure for NAV reporting, SEBI seeks to provide investors with greater visibility into the value of their AIF holdings while ensuring systematic data availability. The mandatory disclosure framework, coupled with appropriate disclaimers acknowledging fund-specific valuation methodologies, strikes a balance between investor protection and recognition of the diverse nature of AIF investments.